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High Net worth Individuals And Life Insurance
Multi Million Dollar Life Insurance Policies
Let's get to it.....
In some cases, consumers sometimes have more to protect than just their spouse and children or assets such as a home. Furthermore, a one million dollar policy just won't be enough. In fact, a multi million dollar life insurance policy might be a good way to protect assets to prevent uncle sam for taking a big bite out of your estate after you pass away. If you have a net worth in the 8 to 9 figure range that can be a very very big chunk!!
If you are a affluent consumer, then you worked hard to accumulate assets over decades. In this day and age having a 10 million, 100 million or even a billion dollar net worth is not something that's unheard of. In fact, there are 11 million millionaires in this country and more than 550 billionaires in the US, the most of any country. So you have a lot to protect and a multi million dollar policy would help to properly protect assets.
The Biggest Life Insurance Policy Ever Sold Was From A Billionaire In Silicon Valley For $201 Million, A Guinness World Record!! A policy that large could put a insurance carrier out of business, so the risk was spread out over 19 different companies each with less than $20 million. Read more about this by clicking here.
So Lets Have Some Fun!!! Lets See What These Mammoth Policies Cost!!
The Best Life Insurance Companies for High Net Worth Individuals
When considering life insurance coverage for high net worth consumers its very important to consider the best insurance carrier. Whether it be universal life, level term or permanent life insurance the amount of life insurance is just as important than picking the carrier.
First of all, when I have a high net worth client the most important is qualifying him for his rating class which will determine the life insurance rates. Medical conditions such as high blood pressure if controlled will not be considered high risk. Furthermore, having a candidate in excellent health will always make the process go smoother. In fact, that is what you strive for when buying life insurance for high net worth consumers. Whether its affordable term or whole life, that is what we strive for!
The top 5 carriers I like to use when determining coverage for affluent clients have the qualities to make sure the death benefit will secure the family financially for the future. Lets face it, applying for a 10 million, 25 million, 50 million or 100 million dollar policy is more than just taking a medical exam!
Here are our top 5:
- Protective Life
- Pacific Life
- American National (Living Benefits)
100 Million dollar life insurance policy Cost
Above all, if you are lucky enough to be placed in a decision to have to get a multi million dollar policy such as $100 million in coverage life must be good. However the old saying,"More money more problems" might have some validity to it. But who are we kidding, if your getting a $100 million dollar policy life is pretty good.
With that said, chances are if you are purchasing a 100 million dollar life insurance policy you are probably a CEO of a technology company, or owners of a retail store chain like the Waltons owners of Walmart. Bottom line, you are not worried about getting cheap burial insurance that's for sure.
Again, if you are looking into a 100 million dollar life insurance policy you might be one of these people. I am sure they are not concerned about non guarantees vs guarantees of a policy.
Forbes Top 3 Billionaires
- 1Jeff Bezos, Amazon, $112 Billion Net Worth
- 2Bill Gates, Microsoft, $90 Billion Net Worth
- 3Warren Buffett, Berkshire Hathaway, $84 Billion Net Worth
Another reason for getting such a large amount of coverage is to secure a mammoth loan! Maybe you are purchasing a professional sports franchise, buying a Super Yacht just to name a few.
So how much does a 100 million dollar life insurance policy cost?
Well, if you are established, the average age for becoming a billionaire is 51. So this example will be from a 51 year old healthy male and female who is purchasing 100 million dollars of coverage.
100 million dollar life insurance policy cost for a male
- 100 MILLION DOLLAR TERM POLICY FOR 30YRS: $32,907.44/MONTHLY $381,062.00/ANNUALLY
- 100 MILLION DOLLAR uL POLICY: $90,043.21/mONTHLY $1,044,379.99/ANNUALLY
100 MILLION DOLLAR LIFE INSURANCE POLICY COST FOR A FEMALE
- 100 MILLION DOLLAR TERM POLICY FOR 30YRS: $24,507.44/MONTHLY $280,085/ANNUALLY
- 100 MILLION DOLLAR UL POLICY: $80,478.08/MONTHLY $943,470.99/ANNUALLY
50 Million Dollar Life Insurance Policy Cost
Ok, so after talking about the 100 million dollar life insurance policy cost it almost feels small talking about anything else, even the 50 million dollar life insurance policy cost. But first let's talk about who would be getting this type of policy.
First of all, when I think about a policy like this and the type of client it consists of first three that come to mind is key man or a buy sell agreement to a major corporation, or a professional athlete. Another that squeaks in is a deferred compensation plan for multiple employees of a corporation. These work wonders on tax deferred write offs for a corporation small or large.
Moreover, professional athletes earn millions of dollars of income through contracts and endorsements. In fact, the lifestyles we see daily for the likes of Floyd Mayweather, Lebron James, Tom Brady and Aaron Judge are what dreams are made of. So it would not be uncommon for athletes such as these to purchase a 50 million dollar life insurance policy. As a matter of fact, it's literally one years income in some cases.
Highest Paid Professional Athletes (Top 7) in 2018~Forbes
So there you have it, so it is not so hard to believe that some of these pro athletes would be or have purchased a 50 million dollar life insurance policy.
So what Does A 50 Million Dollar Life Insurance Policy Cost:
Prudential is one of the carries I would trust with a big retail policy like 50 million in coverage. Especially for a term policy.
$50,000,000 on a 30yr term with Prudential for an athlete in the middle of their prime, (30 yrs of age), your looking at $2632.44/month, $30,085.00/annually.
Protective Life would be the carrier I would trust with the bulk of this policy. In some cases you would need to split it up to a few carriers. Especially with a UL or a GUL product which guarantees to pay out one day. Depending how you utilize these polices in some cases they can be used as an investment.
$50,000,000 on a UL/GUL product which is permanent life policy, for a athlete in their prime (30yrs of age), your looking at $16,163.62/monthly, $187,513.00/Annually.
25 Million dollar life insurance policy cost
Ok, let's talk about the small policies, LOL. All kidding aside, the cost of a 25 million dollar life insurance policy can still be steep depending on the age and health. Again there are 11 million millionaires in this country. So if you are still working or running a business and you are under the age of 50 then this just might cover loss of income over 2 decades.
The 25 million dollar life insurance policy can also be for a buy sell agreement for a mid sized company. For example, if you have a company with a net worth of 100 million dollars and four partners, then a 25 million dollar life policy for each partner would be perfect. God forbid if one of the partners die, the policy would then buy out the family of the deceased.
So let's see what a 25 million dollar life insurance policy costs!
This is based on a 45 year old male and female, in great health for a 20 year term to retirement age of 65.
25 million dollar life policy for a male
25 MILLION DOLLAR LIFE POLICY FOR A FEMALE
10 Million Dollar Life insurance Policy Cost
Another multi million dollar life policy that's more common these days then the pat is the 10 million dollar life insurance policy. Most of these policies I have seen in my career have been usually for estate taxes for clients with a net worth ranging from $15 million to $30 million.
With that said, the IRS will come knocking at your door with their hand out when someone passes away with a considerable net worth. This is usually referred to the federal estate tax!
Multi Million Dollar Life Insurance Policy For Estate
In 2018, the estate and gift tax exemption is $5.6 million per individual. This did increase from 2017. Basically what this means is if you die you are aloud to leave your loved ones $5.6 million without paying federal estate or a gift tax. If married, you can protect $11 million from the federal estate and gift taxes.
So if you have a $25 million dollar net worth and you are a married couple, after you both pass away there could be a estate tax of $13,800,000. This is were a 10 million dollar life insurance policy will come in. This is very important because you do not want your legacy
Furthermore, if you are making a good income of over $500,000 a year in your early 40's, then this also would be a good idea.
Also, you can save up to 50% on your life insurance premiums if you layer your policies.
So LET'S see what a 10 million life insurance policy will cost!
This is based on a healthy 45 year old male and female.
10 MILLION DOLLAR LIFE POLICY FOR A MALE
10 MILLION DOLLAR LIFE POLICY FOR A FEMALE
5 Million Dollar Life insurance Policy Cost
So we have been through the big polices, doesn't the 5 million dollar life insurance policy look small? I mean after talking about billionaires, highest paid sports athletes, high net worth individuals and estate taxes now we get to the normal stuff, it's just another multi million dollar life policy right?
Now we are getting close the common folks. However, we are still in the 1%, the affluent population. But a 5 million dollar policy is pretty common for those that make between 250k and 500k annually. I mean the rule of thumb is at least 10 times your income.
If you are not sure how much life insurance you need, here is a great planner!!
So let's see what a 5 million dollar life policy will cost.
We will base this off of a 40 year old healthy male and female on a 30yr term that will bring them to retirement age.
5 MILLION DOLLAR LIFE POLICY FOR A MALE
5 MILLION DOLLAR LIFE POLICY FOR A FEMALE
3 million dollar life insurance policy
Above all, when shopping for a multi million dollar life insurance policy you want you want to make sure you get exactly what you purchasing. For instance, the 3 million dollar life policy will be great for someone making between $150k and $300k a year. In fact, if you are in your 40's you probably still have children that are young or in grade school. So this will make sure in the event of your death that they will be covered.
If you know me, then you know when it comes down to life insurance I like to keep it simple. We can talk about college, which is the average cost for college was $33,480 for private college, $9,650 for state residents of public colleges and $24,930 for out of state residents attending universities.
With that said, it really comes down to your paycheck!! That is what will cover all of this. However, if you die, your paycheck dies with you. It is important to maintain between 10 and 20 times your income if you have children below 10 years of age!!
I recently wrote a case for a widower senior over age 75 for a 3 million dollar GUL with Protective Life. Her husband had recently passed away and she was left with a net worth of 18 million. So she had a second to dies policy for $6 million. So adding an additional $3 million of coverage will protect her assets from the IRS and the estate and gift tax!
So Let's See What A 3 Million Dollar Life Policy Will Cost.
We will base this off of a 45 year old healthy male and female. The main goal is to get all of the kids out of the house and get to social security retirement age of 65. Basically knocking off to birds with one stone!!
3 MILLION DOLLAR LIFE POLICY FOR A MALE
3 MILLION DOLLAR LIFE POLICY FOR A FEMALE
We are boutique life insurance Specialists In Jacksonville, FL. However we have clients in 49 states. We specialize in all things life insurance. We have access to over 50 carriers and 300 products. That's why we can say with confidence.....
Best Price, Best Carrier, GUARANTEED!!!
If you have any questions about any of these polices feel free to contact me at 855-380-3300 or email me at firstname.lastname@example.org.